Asda posts worst ever quarterly results

Asda has reported its worst quarterly results, with like-for-like sales in the 13 weeks to 1 January down 5.8%, as it promises to overhaul its range to “better reflect what our customers want.”

CEO Andy Clarke admitted 2015 had been a difficult year, with the UK retail market still undergoing “significant and permanent structural change”.

The company suffered a dismal Christmas – consumer spending fell 3.5% over the festive period – contributing to its worth ever quarterly results. However like-for-like figures for the full year like-for-like sales finished at 4.7% it said, and Clarke remained bullish, insisting that its results “commendably stable” in the context of the wider market, noting that many of its competitors had suffered “severe falls” in profitability.

“Competition in our sector has been fierce and our market share has come under pressure,” he admitted. “[But we have been] balancing investment in our customers with disciplined financial management in a period when. We have steered a careful course through this very turbulent period for the industry and through a complex set of challenge.”

He outlined plans to invest an additional £500m in price, announcing a new “pocket more” policy to ensure lower prices on around 1,600 lines.

“Through this investment we will also take another step in narrowing the price gap to the limited assortment discounters,” he said.

But the retailer is expected to shed hundreds of staff as it announced it would be simplifying the structure at Head office as well as services in store to “drive operational efficiencies”.

The BBC has reported that up to 300 jobs at the retailer’s Leeds head office could be under threat.

Other key plans for 2016 include revamping around 95 of Asda’s largest stores, joining the European Marketing Distribution Alliance (EMD), an organization of around 250 supermarket and independent retailers that uses its collecting buying power to boost competitive conditions.